Super funds closing in on strong year

Growth-orientated super funds are likely to provide members with double-digit returns throughout the 2016-17 financial year, says Chant West.

The performance of superannuation funds throughout 2016-17 has been "remarkably strong" with returns likely to be north of 10 per cent, says Chant West.

The median growth fund (i.e. 61-80 per cent growth assets) gained 0.5 per cent in May 2017, taking the return over the first 11 months of 2016-17 to 10.4 per cent.

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Chant West director Warren Chant said that with less than two weeks left in the financial year, the median growth fund is likely to return just under 11 per cent for the 12-month period to 30 June 2017.

"This year’s performance comes on the back of a seven-year run in which growth funds returned an average of 8.8 per cent per annum. This year looks like increasing that average," Mr Chant said.

"Funds are performing well above the rate of inflation and well ahead of their own inflation-adjusted targets. That’s really impressive, especially since we’ve been through a long period of uncertainty, both economic and political.

"We’re not out of the woods yet, but the economic indicators are certainly looking better now than they were a year ago."